Petition for the determination-cum-truing up of the transmission tariff for Hosur Sub-station under Augmentation of Transformation Capacity at the Hosur Substation – EQ

Summary:

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### 1. Overview of the Hearing

This document is a “Record of Proceedings” from a CERC hearing involving multiple tariff petitions filed by PGCIL. The core objective of these petitions is to seek regulatory approval for:

1. **Truing-up (2019-24):** Adjusting the provisional tariffs approved for the previous control period based on actual capital expenditure, interest costs, and performance.
2. **Tariff Determination (2024-29):** Setting the final transmission tariffs that PGCIL can charge utilities for using its assets during the upcoming control period.

The petitions cover transmission assets in the Southern, North Eastern, and Northern Regions of India.

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### 2. Key Business & Regulatory Directives

The Commission did not approve the tariffs during this hearing. It issued specific directions for additional data submission and granted timelines for responses. Tariff approval is contingent on compliance with these directions.

#### A. General Procedural Directives
– **Reply and Rejoinder Timelines:** Across all petitions, Respondents (State Utilities) were directed to file their replies within **one week**. PGCIL was granted a subsequent week to file rejoinders.
– **Hosur Substation Petition (No. 391/TT/2024):** PGCIL was granted time to file a rejoinder specifically to the reply filed by TANGEDCO (now TNDDL), indicating a specific point of contention between the transmission utility and the distribution company in Tamil Nadu.

#### B. Specific Information Requirements (Financial & Technical Scrutiny)

CERC directed PGCIL to submit the following information on affidavit. These requests highlight the regulatory focus on cost efficiency and prudent investment.

**For Petition No. 391/TT/2024 (Hosur ICT – Southern Region):**
– **Cost Comparison:** Estimated completion cost vs. the awarded cost as per the Letter of Award (LoA).
– *Business Implication:* To ensure the project did not exceed the originally approved budget without justification.
– **Liquidated Damages (LD):** Whether PGCIL recovered any LD from contractors for delays or underperformance, and details thereof.
– *Business Implication:* Any LD recovered reduces the overall project cost, which must be passed on to beneficiaries (utilities) in the tariff.

**For Petition No. 454/TT/2024 (Bhadla-II Bays for RE Generators – Northern Region):**
– **RE Generator Data:** The start date of connectivity and the Scheduled Commercial Operation Date (SCOD) of the RE generation (NTPC’s renewable projects).
– **Mismatch Analysis:** Whether there is any mismatch between the transmission system implemented by PGCIL and the actual RE generation under NTPC’s control.
– *Business Implication:* This is a critical check for “stranded assets.” If the transmission line is built but the power plant is delayed, the tariff charged to utilities becomes a cost without corresponding benefit.
– **Financial Forms:** Form-9C (Tariff Calculation), Form-5, and Form-7B (Financial details) in Excel format.
– **IDC Details:** Details of interest rates considered for Interest During Construction (IDC) and the IDC statement in Excel.
– **Cost & LD:** Same as above (cost comparison and LD recovery).

**For Petition No. 449/TT/2024 (ULDC & Communication – NER):**
– **Forms & IDC:** Submission of Form-5, Form-7B, and details of IDC interest rates.
– **Cost & LD:** Estimated completion cost vs. awarded cost, and details of any LD recovered from contractors.

**For Petition No. 818/TT/2025 (NRSSS-XXXV – Northern Region):**
– **Form 7B:** Submission of the specific financial form.
– **IDC Details:** Details of the rate of interest considered for IDC.

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### 3. Key Data Format Requirements

For petitions involving project execution (e.g., Nos. 391, 454), CERC mandated a comparison of:

| Estimated Completion Cost | vs. | Awarded Cost (as per LoA) |
| :— | :— | :— |

– **Business Relevance:** This ensures that any cost overruns are scrutinized. If the completion cost exceeds the awarded cost, PGCIL must justify the increase, or it may not be passed on to consumers.

Additionally, for petitions involving **Interest During Construction (IDC)** , CERC demanded the IDC statement in Excel format with detailed interest rates for all sources of financing (debt/equity). This ensures that financing costs claimed are accurate and prudent.

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